Trends in Nutritional Ingredients for Beverages · RTD tea - Fortified/functi onal $399 $841 $1,464...

Trends in Nutritional Ingredients for Beverages

Date: September 17, 2008Prepared for: International Citrus & Beverage Conference

Prepared by: Ram Chaudhari, Senior Executive Vice President and Chief Scientific Officer of Fortitech, Inc.

Overview

• Consumer Spending

• Beverage Market Drivers

• Hot Ingredients

• Technical Challenges in Beverage Fortification

North America &Global Snapshot ofFortified/FunctionalConsumer Spending

North America (U.S. & Canada)Fortified/Functional Beverage Spending

$0

$5,000

$10,000

$15,000

$20,000

$25,000

USD (Millions)

2002 2003 2004 2005 2006

Fortified/Functional BeveragesNorth America

•The fortified/functional beverage category has increased by nearly 90% from 2002 to 2006

•Energy Drinks, Bottled Water, and RTD tea have been the fastest growing categories from 2002 to 2006

• Fruit/Vegetable Juice, Bottled Water, Sports Drinks and Energy Drinks accounted for 91% of the beverage category spending in 2006

Numbers represented in USD (Millions)Source: Euromonitor

2002 2003 2004 2005 2006% Growth 2002-2006

$ Growth 2002-2006

Carbonates - Fortified/functional $0 $0 $40 $99 $417 n/a n/aFruit/vegetable juice - Fortified/functional $4,166 $4,428 $4,553 $4,814 $5,061 22% $896Bottled water - Fortified/functional $206 $341 $559 $908 $1,431 593% $1,225Sports drinks - Fortified/functional $4,610 $5,169 $5,788 $7,096 $7,882 71% $3,272Energy drinks - Fortified/functional $728 $1,019 $1,694 $2,751 $3,975 446% $3,247Elixirs - Fortified/functional $511 $541 $596 $630 $664 30% $153Concentrates - Fortified/functional $165 $160 $155 $151 $147 -11% -$17RTD tea - Fortified/functional $75 $113 $195 $268 $324 334% $249Hot drinks - Fortified/functional $154 $163 $171 $180 $190 24% $36

TOTAL $10,614 $11,935 $13,750 $16,897 $20,091 89% $9,478

$0

$5,000

$10,000

$15,000

$20,000

$25,000

USD (Millions)

2002 2003 2004 2005 2006

BrazilMexico

Eur, Mid East & AfricaAsia Pacific & Australia

North America

Fortified/Functional Beverages Five Regions

Regional BreakoutFortified/Functional Beverage Spending

• Brazil was the fastest growing market, with 96% growth in the fortified/functional beverage category from 2002-2006

•North America had the largest dollar growth from 2002-2006 with nearly $9.5 Billion

Source: Euromonitor

Global BreakoutFortified/Functional Beverage Spending

$0$10,000$20,000$30,000$40,000$50,000

USD (Millions)

2002 2003 2004 2005 2006

Fortified/Functional BeveragesGlobal

•The global functional/fortified beverage category grew by nearly 15% from year-to-year from 2002-2006

•RTD Tea, Carbonates and Bottled water were the fastest growing segments within the beverage category

•Sports Drinks and Energy drinks had the largest dollar growth from 2002-2006 out of the entire global beverage category

Source: Euromonitor

2002 2003 2004 2005 2006% Growth 2002-2006

$ Growth 2002-2006

Carbonates - Fortified/functional $148 $168 $231 $598 $982 561% $833 Fruit/vegetable juice - Fortified/functional $7,130 $8,356 $9,050 $9,824 $10,765 51% $3,635 Bottled water - Fortified/functional $1,638 $2,269 $2,862 $3,169 $3,658 123% $2,020 Sports drinks - Fortified/functional $10,509 $11,580 $13,560 $15,326 $16,292 55% $5,784 Energy drinks - Fortified/functional $4,251 $4,989 $6,322 $7,740 $9,191 116% $4,940 Elixirs - Fortified/functional $562 $608 $676 $732 $771 37% $209 Concentrates - Fortified/functional $1,863 $2,036 $2,269 $2,585 $2,823 52% $960 RTD tea - Fortified/functional $399 $841 $1,464 $1,680 $1,766 343% $1,367 Asian speciality drinks - Fortified/functional $54 $89 $90 $79 $68 26% $14 Hot drinks - Fortified/functional $2,618 $2,995 $3,405 $3,829 $4,141 58% $1,524

TOTAL $29,171 $33,931 $39,931 $45,562 $50,456 73% $21,285

Beverage Market Drivers

Market Drivers

Healthier Drinks Toward

Children

Health Conscious

Society

Growth Of Aging Population

Hectic Lifestyle

Product Differentiation


Market Drivers


Beverage Market Drivers Hectic

Lifestyle


Children


RESULT

Total Health and WellnessFunctional Beverages

that deliver health benefits beyond basic nutrition

Well Balanced NutritionHealth conscious consumers

People trying to eat healthier grew by 30 million

between 2002 and 2006 (Mintel, 2007a)

DRIVER

Health conscious societyRising levels of obesity and

other health conditions

Media spotlight dangers of trans fats, E. Coli salmonella outbreaks

Shift from disease cure to disease prevention

Market Drivers

Health Conscious

Society


Lifestyle


Children


RESULT

Products Offering AddedHealth Benefits

Products targeting health conditions

associated with agingHeart – Immunity – etc.

DRIVER

Growth of aging population100 Million Americans are

expected to be over 50 by 2010

Approaching 500 millionbaby boomers worldwide

Market Drivers

Health Conscious

Society


Beverage Market Trends


Children


RESULT

ConvenienceBeverages play into

convenience & provide on-the-go

product solutions

DRIVER

Hectic Lifestyle People are facing greater time

pressure and are multi-tasking more

Rising cost of living means rise of dual income families

Market Drivers

Health Conscious

Society



Lifestyle Product

Differentiation

RESULT

Alternative to High Calories

and Sugary Carbonates Sugary/high calorie

carbonate consumption is declining

More nutrient dense products emerging

DRIVER

Healthier Drinks Toward ChildrenHigher awareness on keeping kids

healthy and reducing childhood obesity

Kids beverages are expected to grow to $5.8 billion by 2012(packaged facts “kids’

beverages in the US” report

Market Drivers

Health Conscious

Society


Hectic Lifestyle



Children

RESULT

Personalized ProductsVariety of products that

address mood, obesity, boost energy, etc.

DRIVER

Product DifferentiationCompanies looking for

competitive edge by adding in-demand ingredients &

targeting specific audience demographics/

health conditions

Hot Ingredients

• CoQ10 • Probiotics/Prebiotics• Taurine• Omega-3 • Green Tea • Antioxidants (A,C,E)• Superfruits• Calcium • Lycopene• B-complex • Fiber• Collagen • Aloe Vera (botanicals) • Zinc

• Weight Management• Cardiovascular • Energy • Joint Health• Immunity• Anti-Aging/Total

Wellness• Skin/Anti-Wrinkles• Enhanced Cognitive

Function • Sleep • Anti-Stress• Digestive Health • Diabetes• Anti-inflammatory

Other Hot Ingredients Targeting Weight Management: Choline, Phytosterols, Vitamin D&K, Chromium and Selenium

Hot Ingredients

• CoQ10 • Probiotics/Prebiotics• Taurine• Omega-3 • Green Tea• Antioxidants (A,C,E)• Superfruits• Calcium • Lycopene• B-complex • Fiber• Collagen • Aloe Vera (botanicals) • Zinc




Hot Ingredients


• Weight Management• Cardiovascular • Energy• Joint Health• Immunity• Anti-Aging/Total



Other Hot Ingredients Targeting Energy: Chromium

Hot Ingredients





Hot Ingredients





Other Hot Ingredients Targeting Skin/Anti-Wrinkles: Beta Carotene, Zeaxanthin, Lutein

Hot Ingredients

• CoQ10• Probiotics/Prebiotics• Taurine• Omega-3 • Green Tea• Antioxidants (A,C,E)• Superfruits• Calcium • Lycopene• B-complex • Fiber• Collagen • Aloe Vera (botanicals) • Zinc



Function• Sleep • Anti-Stress• Digestive Health • Diabetes• Anti-inflammatory

Other Hot Ingredients Targeting Enhanced Cognitive Function: Choline, Tocotrienols, Creatine, Phosphatidylserine, Green-Tea, GABA

Hot Ingredients





Other Hot Ingredients Targeting Sleep: L-Tryptophan, GABA, Melatonin, Chemomile, 5-HTP, Valerian

Hot Ingredients

• CoQ10 • Probiotics/Prebiotics• Taurine• Omega-3• Green Tea• Antioxidants (A,C,E)• Superfruits• Calcium • Lycopene• B-complex • Fiber• Collagen • Aloe Vera (botanicals) • Zinc




Other Hot Ingredients Targeting Anti-Stress: GABA, St. John’s Wort

Hot Ingredients





Hot Ingredients





Other Hot Ingredients Targeting Diabetes: Chromium

Hot Ingredients





Other Hot Ingredients Targeting Anti-inflammatory: Selenium, Glutathione

Technical Challenges in Beverage Fortification

• Factors to consider for “Proper” Nutrient SystemSolubilitypH of the finished productStability of nutrientsType of finished productDose/BioavailabilityInteractions between nutrientsEffect of these interactions on bioavailability of the nutrientsEffect on taste, flavor and color of the finished productSafety/Toxicity

Building Premixes (Nutrient Systems)

Other factors to consider

TemperatureWaterpHOxygenLight (irradiation)Minerals (iron, copper…)EnzymesInteractionsTime

VITAMINS

• Sulfur dioxide has a detrimental effect on the thiamin resulting in instant degradation

• Some fruits used in fruit juices and fruit based drinks may have a carry over of sulfur dioxide

• Levels of sulfur dioxide should be determined prior to fortification and appropriate overages should be added to compensate for losses

Facts about Thiamin

• Riboflavin is very unstable to UV light and must be protected when in solution

• Any beverages containing riboflavin or vitamin B2 should be packed in brown bottles or UV barrier materials

Facts about Riboflavin

Stability of Nutrients

Effect of pH Air Maximum

Neutral Acid Alkaline or Cooking

Nutrient pH 7 <pH 7 >pH 7 Oxygen Light Heat Losses (%)

Vitamin A S U S U U U 40

Ascorbic Acid (C) U S U U U U 100

Biotin S S S S S U 60

Carotene (pro-A) S U S U U U 30

Choline S S S U S S 5

Cobalamin (B12) S S S U U S 10

Vitamin D S S U U U U 40

Folic Acid U U S U U U 100

Inositol S S S S S U 95

Vitamin K S U U S U S 5

Niacin S S S S S S 75

Pantothenic Acid S U U S S U 50

Stability of Nutrients

Effect of pH Air Maximum

Neutral Acid Alkaline or Cooking

Nutrient pH 7 <pH 7 >pH 7 Oxygen Light Heat Losses (%)

p-Aminobenzoic Acid S S S U S S 5

Pyridoxine (B6) S S S S U U 40

Riboflavin (B2) S S U S U U 75

Thiamin (B1) U S U U S U 80

Tocopherol (E) S S S U U U 55

Essential Fatty Acids S S U U U S 10

Mineral Salts S S S S S S 3

Potential for Color Problem

Fruit based beverages have a low pH

Solubilize most mineral salts

Increased reactivity of mineralsPotential to cause color problems

Increasepotential forbioavailability

Building a Premix

Time

Nut

rient

s Le

vel

Premix made Finished product made

End of finished product shelf life

Minimum label claim finished product

6 Months 0 1 yr 2 yrs

Premix Target Level

Premix Storage Loss

Processing Loss

Finished Product Storage Loss

• Color problem with sterile strawberry and chocolate liquid dietary products:

Use of high levels of• Insoluble Ca/Mg salts causes a lighter color due to a

diluent-like effect at high concentrationWhile opposite occurs with use of

• Soluble salts in chocolate dietary product probably due to reactions with phenolic compounds such as tannins in the chocolate


Color Problems:e.g. Darkening of Product

• Iron as Ferrous Sulfate (a ‘reactive’ form)• Iron reacts with phenolic compounds like tannins & forms a

blue/black color which gives a darker producte.g. Iron causes a grey color in milk and soy based isolate infant formulas

Vanilla flavored product + ferrous citrate

Powder form is white+ Milk

Reaction between sodium ascorbate, iron & vanilla(trace amounts of phenolic compounds)


Q. How do you deal with such color problems?To minimize or eliminate by:

• Changing the mineral source or

• Adding it to the product at a different stage in the process

e.g. Iron dry blended into the finished product might have better color than if it is added during the liquid stage


Off Flavor Due to Oxidation:

Cu & Fe are both transition metals. Both (especially iron) are pro-oxidants in products containing lipids.

The Fe+2 form facilitates oxidation of the lipids

leading to rancidity & “off” flavor

Potential for Taste Problem

Physical & Chemical Interactions (I)

Vitamin C

+ Magnesium

+ Iron/Copper

+ Chromium

+ Vitamin B1

Oxidation&

Discoloration

Rotten egg smell due

to “S”

Discoloration due to

impurities in Mg

Potential for Color and Taste Problem

Physical & Chemical Interactions (II)

Iodine + Starch

L-Carnitine+

Minerals

Choline Salt+

Minerals

Discoloration

Discoloration&

“Fishy” Smell(Trimethy Amine)

Potential for Color and Taste Problem

Nutrient to Nutrient Interactions

Positive• Vitamin C and Iron Improves the absorption of Iron• Vitamin E and A Stems to increase the

bioavailabilty of vitamin A (due to antioxidant activity of E for stabilization of A in GI tract)

• Vitamin C In UHT milk plays an important role in protection of the folatelight induced vitamin C loss from milk is reduced in the absence of B2

Negative• Vitamin C and

other trace minerals Increases the rate of ascorbic acid destruction (moisture dependent)

• Calcium Inhibitory effect on iron absorption• Phosphorous Negatively influences calcium

absorption due to Ca/P ratio greater than 1:1

• In solution Vitamin C Destabilize folic acid and vitamin B12

• Degradation productsof B1 Accelerates the rates of degradation

of folic acid and B12, whereas the presence of Fe salts in solution stabilizes B12


Negative• In solutions of B Vitamins Riboflavin can cause the oxidation of

B1. If Vitamin C is added then reaction doesn’t occur.

• Riboflavin Promotes oxidative degradation of folic acidAlso vitamin C loss occurs


How to minimize interactions

Approaches:

• Ideally, it is good to have vitamins & minerals separate as two different premixes to avoid interactions.

• If, for processing reasons, one wants to make a premix containing vitamins, minerals and trace minerals, then, depending on the application:

one can encapsulate some of the vitamins and minerals and minerals

e.g. Vitamin C, Vitamin B1, Cu, Fe, Mg, etc.

Proposed Concept of a Safe Range of Nutrient Intake

Observed Level of Intake

Ris

k of

In

adeq

uac

y 1.0

Ris

k of

Exc

ess

0.5

0

Average Requirement

Deficient

RDAUpperScale

0.5

0

1.0

Safe Range of Intake

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Worldwide Headquarters: Schenectady, New York USA

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Thank You

Trends in Nutritional Ingredients for Beverages · RTD tea - Fortified/functi onal $399 $841 $1,464...

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